Wednesday, January 07, 2009

Rescuing the British Economy

David Cameron has announced a series of new policies to encourage saving and ensure a good future for Britain’s economy.

These demonstrate that the Conservative approach is not "Do nothing" but "Do something which will work."

David began his speech with an analysis of the problem: the present government has allowed the level of government, corporate and personal debt to rise too high. Labour’s Debt Crisis means we are in a weaker economic position than other countries.

He stressed, “We need to make a really big change: from an economy built on debt to an economy built on saving; from a country and government that has lived beyond its means to one that lives within its means.”

David outlined two firm proposals to help turn Britain “from a spend, spend, spend society into a save, save, save society”:

* Abolishing income tax on savings for everyone on the basic rate of tax (with top rate taxpayers continuing to pay the same)
* Raising the tax allowance for pensioners by £2,000 to £11,490.

These changes would be funded by restricting all Government departments – except for health, schools, defence and international development – to a 1% real increase in spending in 2009/10.

David also made further policy announcements to illustrate the new direction in which we want to lead Britain’s economy:

* Green tech incubators, to help new green start-ups get off the ground
* An environmental stock market, where green companies are listed and traded
* Measures to ensure the majority of the population have access to fibre-optic
broadband within five years – and as near as possible universal coverage within
ten years

David ended his speech by stressing that Britain’s economy needs to move forward, not back:

“We are at the end of the road under Labour. There is no going forward with them. This country needs to strike out in a new direction. So it is a clear choice: a grim future under Gordon Brown, or a good future with the Conservatives.”

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